Grocery chain Bach Hoa Xanh shuts down over 300 outlets

The grocery giant’s website says there are 1,824 outlets as of Wednesday morning as against the 2,140 it said it had in an April report.

Customers said in recent weeks many stores had put up signs offering discounts of up to 50 percent, a possible sign they were closing down.

Since its launch in 2015, Bach Hoa Xanh has been one of the fastest growing retail chains in Vietnam.

It surpassed the 1,000-store mark within four years of establishment.

But Nguyen Duc Tai, its chairman, had said earlier there would be no expansion this year to focus on improving efficiency and customer service.

As of May only around half met the necessary requirements to remain in operation, and the company would "handle" the underperforming outlets, he had added.

The company is preparing for nationwide expansion in 2023. Its presence is now predominantly in the south.

It also plans an initial public offering of 20 percent either this year or next.

Bach Hoa Xanh reported revenues of VND10.5 trillion ($448.76 million) in the first five months of this year, accounting for 17.7 percent of its parent company Mobile World’s total sales.